People who buy and sell bitcoin and other cryptocurrencies are being warned to check if they need to pay tax on any windfalls, they make amid an HMRC crackdown. The taxman has confirmed it’s asked a number of cryptocurrency buying and selling platforms to reveal how much users are making. Experts say the move follows a similar investigation launched by the USA’s Internal Revenue System (IRS).
HMRC won’t say which firms it’s spoken to but CEX.IO told The Sun that it’s been contacted by the tax man. The crypto exchange says it’s been asked for the names and addresses of UK residents who’ve transferred cash using the site between April 6 2017 and April 5 2019 – as well as the value and dates of transfers. CEX.IO says it’s now investigating whether it has to meet the tax man’s demands. This is a timely reminder that while you don’t have to pay tax when you buy bitcoin or other cryptocurrencies in the UK, you might have to pay capital gains tax when you come to sell it.